CALICO FUDGEMAKING BROCHURE

nigelcalico

Calico's in store fudgemaking programme

Calico Cottage

FUDGE

PROGRAMME

www.calicocottage.co.uk/business

01353 741661


WHO ARE

CALICO

COTTAGE?

MONEY

MATTERS!

In 1989 Nigel Baker

started Calico Cottage in the UK, initially

importing mixes and fudgemaking machines (known as a kettle) from its namesake in the USA but very quickly moving

into manufacturing.

Whilst links to our American colleagues remain very strong, 26 years on Calico is an established British manufacturing

success story with year on year growth right through the recent recession. Every fudge kettle and every bag of fudge mix

is made in our factory in Cambridgeshire and the company is still 100% owned by the Baker family. Three generations of

the family work in the company to this day.

Twenty five years prior to Calico starting in Europe, an American gentleman by the name of Leonard Wurzel had a chain

of candy making stores within supermarkets in the USA. The supermarkets closed down leaving Leonard with leases to

pay but no customers. His business was nearly crushed under the pressure of hundreds of thousands of dollars of debt.

Rather than default on these debts, he started Calico Cottage, a company which has now grown to be the World's Largest

Provider of fudgemaking ingredients and equipment. Leonard paid every dollar back and his company is now run by his

sons from a state of the art facility on Long Island New York.

Calico in the USA helped us get started in Europe and gave us great support at a time when UK banks would not. We still

have close ties to Calico Cottage in America and swap knowledge and experiences on a daily basis. Whilst their flavours

may seem a bit odd at times (they would say the same about ours!), our American Partners' ethics and principles are

untouchable and we work to the same high standards here in Europe.

Calico is

NOT a

Franchise

Calico does not sell a franchise. In fact we can never

understand why anyone would pay a price premium for an

often relatively unknown confectionery franchise when, for

a fifth of the price, you can start making better quality,

beautiful looking, luxury fudge yourself and sell it under

your own name with no license fees, no royalties and much

higher margins. Don’t pay crazy money for something you

can do better yourself!

Even if you want to set up a sweet shop alongside your

fudge, Calico can give you plenty of advice and assistance

at no charge. We even stock 100 varieties of sweets.

The fudge which you make with our programme sells for

between £2.25/100g and £3.00/100g. It costs around

50p/100g to make.

If you are not VAT registered it’s worth noting that there’s

no VAT on the mix and so 50p/100g is all you pay.

With suitable promotions, you should achieve an average

sale of close to £6.


WILL

FUDGEMAKING

WORK FOR ME?

The only real way to tell this is to talk over your plans

with us. We will give you straight advice because the

last thing we want to do is sell a kettle and never sell

another case of mix to you. However, there are

certain characteristics which successful fudge retailers

all have in common:

GREAT LOCATION – Good passing trade with the

fudge display adjacent to the cash register.

GREAT DISPLAY - People buy with their eyes. If your

display is not attractive you will kill your profits dead.

FRIENDLY SALES STAFF – Success comes from visitors

enjoying their experience. Handing out small samples

with a smile and a welcome will pay dividends.

UPSELLING -You have an amazing display with fudge

that simply cannot be bought anywhere else so make

sure people are encouraged to buy more than one

flavour!

STAND OUT

“Why would I want to make fudge

when I can buy it in readymade?”

When we started back in the 1980’s there was only

one colour of fudge – brown. Since we introduced

the country to some new looks and flavours there

have been many attempts to imitate us with prepackaged

finished product.

We are inevitably flattered by this imitation but our

whole ethos is trying to help our customers to make

fudge that cannot be bought in a pack from every

gift shop, tourist attraction or garden centre so that

you are truly unique and memorable. We hope to

give you something that makes you totally different

from your competitors.

You can buy peanut butter fudge anywhere but you

can’t get a “Fully Loaded Fudge” oozing with toffee

pieces, soft caramel, marshmallows, Oreos and

peanut butter. That is what will make you different

and that is what will enable you to sell far more

fudge than any pre-packed option.

Our experience suggests that you can sell between

five and ten times the quantity of a pre-packed offer

by making your own fudge.


Three hours per week of fudgemaking

would equate to £30k of revenue or

£20k of profit per year.

In spite of this we still hear sites with great potential

dismiss fudgemaking without a second glance.

Enthusiasm is a key component for success. We want

to work with retailers who care passionately and

retailers who want to maximize their profits. So

before you disregard the idea altogether, visit our

website and have a look at our videos or play with

our profit calculator.

“IT SOUNDS LIKE HARD WORK”

From four base mixes you can make 400 varieties of

fudge. From start to finish it will take three hours to

make 30kg of fudge in up to 12 different flavours

with a retail value of £600. For much of those three

hours you can go away and do something else whilst

the fudge is left mixing. Does it still sound like hard

work?!

This table gives you an idea of how much money you

might make from a given number of sales per day.

There is obviously no such thing as an average

customer but sales of £25k per annum would be about

par for the course.

If you imagine a well located fudge display in your

store with a great looking range of flavours then just

ask yourself, how many sales per day you might make?

We have customers at both ends of the spectrum. Even

with just ten purchases per day you would recover your

investment in around six months.

We have assumed an average sale of 250g and a price of £2.50/100g –

these figures also allow for some typical promotions

THE START-UP KIT

We sell a start-up kit that enables you to make

150kg of fudge with a retail value of about £3200

plus VAT.

The kettle costs us £3400 to make and we deliver

it to you for £3500 plus VAT. With utensils,

flavourings, start up packaging and fudge mix you

will spend £4600 plus VAT. We also train you onsite

for two days at our cost. The contents of the start

up kit can be changed to suit your requirements.

Needless to say, if you’re not selling fudge mix,

we’re not making money. We both have a mutual

interest in getting you the highest possible return

on your investment.

Equally, we will tell you

upfront if we do not believe fudgemaking will

work for you.

At twenty sales per day it will take

less than 90 days to recover your

investment. We’ve even had people

recover it in just three days.

Fudge sells at typically £2.50/100g and

costs you around 50p/100g to make

including butter, flavourings and

delivery charges of about 2.5p/100g.

At a retail price of £2.50/100g you will

make £1.58/100g profit after VAT*.

Adding additional ingredients such as

nuts, dried fruit, marshmallows,

meringue pieces and toffee pieces

will change this price but not

dramatically.

*based on 2016 price data

This table gives you an idea of how much money

you might make from a given number of sales per

day.

There is obviously no such thing as an

average customer but sales of £20k per annum

would be about par for the course. It is easy for a

supplier to make great forecasts but nobody knows

your business better than you do.

If you imagine a well located fudge display in your

store with a great looking range of flavours then

just ask yourself, how many sales per day you

might make?

We have customers at both ends of the spectrum.

Even with just ten purchases per day you would

recover your investment in around six months.

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FUDGEMAKING IS

QUICK, EASY AND

PROFITABLE

ALL MIXES ARE GLUTEN FREE AND

SUITABLE FOR VEGETARIANS, WE

ALSO HAVE A RANGE OF NATURAL

COLOURS AND FLAVOURINGS

WHAT IS THIS GOING TO

COST ME?


WHAT WILL CALICO DO TO HELP?

We’ve talked about your potential profits and what makes a retailer successful at selling fudge. However, before you decide

to proceed we can send you our comprehensive set up guide and any additional materials you require. These documents

coupled with our online videos, contain all of the information that you need to locate and design your display, calculate

costs, develop signs and clarify any Health and Safety requirements. Deciding where best to position a fudge display and

negotiating space is something which potential new customers have found tricky in the past so if this is the case, please

don’t hesitate to call us and ask for us to visit your site as we would be delighted to discuss your plans and help you get

started.

WHAT HAPPENS NEXT?

As soon as you’re ready to go with a great display in

the right location, Calico’s efforts focus on getting you

set up and trained correctly. We spend two days with

you and your team; the first is spent making fudge

and the second is spent retailing it. The first day is the

easier day but the second is critical and has to be done

with some live customers in your shop. Retraining is

also available for those of you with a high turnover

of staff. Once you are up and running, you can receive

continued support from Calico with seasonal ideas

and promotions so that your display never starts to

look tired. There’s a flavour for every time of the year

whether it’s colourful fruity flavours in the summer or

suitably festive flavours and decoration in the later

months. You’ll be amazed at the difference it makes.

Never forget that fudge is an impulse purchase so the

better it looks, the more tempting it becomes and the

more likely people are to come back! This could help

increase sales of your other lines and certainly

increases average spend per head so make sure that

your display is always looking fabulous!

THE CALICO COTTAGE WEBSITE

We have a comprehensive website designed to meet all of our

customers’ needs and offer a variety of online videos which

demonstrate everything covered in this brochure so please

don’t hesitate to have a good browse. If you go ahead with the

Calico Fudge Programme you will also receive a unique login

to our Customer Only Trade Area. This gives you access to vast

amounts of additional materials including kettle maintenance

videos, a recipe database, contact details for individual Calico

staff members, specialist training videos, and finally the ability

to place your orders for fudge mix online.

Visit www.calicocottage.co.uk/business or to enquire about

a Trade Area login, email us on info@calicocottage.co.uk

Finally, don’t forget, we rely on you selling fudge to make any

money ourselves so if we can help you in any way, we are very

motivated to do so!

Calico Cottage

Unit 2, Haddenham Business Park,

Sutton Road, Haddenham, Cambridgeshire CB6 3PT

www.facebook.com/calicocottageuk

www.twitter.com/calicocottageuk

Tel: 01353 741661 Email: info@calicocottage.co.uk Website: www.calicocottage.co.uk

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